Efforts To Protect Big Tobacco From Lawsuit Draw Fire

April 16, 2000|By TERRI SOMERS Staff Writer and Staff Writer John Kennedy contributed to this story.

A money grab. Unconstitutional. Favoritism. Hypocrisy.

That was the reaction from public health advocates, legal analysts and sick smokers last week to the news that state legislators are discussing measures that would shield the tobacco industry from a possibly huge punitive verdict in a precedent-setting, class-action case.

As a result of that case, for the first time sick smokers could receive money directly from the cigarette companies to pay for medical bills, lost wages, and pain and suffering. But legislators are worried that a judgment to the sick smokers could jeopardize money the state's already getting from tobacco companies.

State leaders worked long and hard in 1997 to make their own settlement with the tobacco industry. Under that settlement, the industry is putting $13 billion into state coffers, through multimillion-dollar payments each year. About $40 million of that money is being used each year to finance youth anti-smoking programs, and the rest is used for general purposes.

Many are opposed to the Legislature doing anything that would affect smokers' chances of getting money from the industry that made them sick.

"Florida's Legislature should not be pushing for special protections that would shelter the tobacco industry but should instead focus on protecting the health of their citizens from the predatory practices of Big Tobacco," leaders of the state chapters of the American Cancer Society, the American Lung Association and the American Heart Association stated in a joint letter sent to Gov. Jeb Bush on Wednesday.

The class-action trial in Miami "should continue without the burden of any new legislation that would only delay or impede due process for the victims of the tobacco industry," the letter states.

Early last week, a special legislative committee was considering which of several proposed measures it might enact to safeguard the money it's getting from the industry.

By Thursday evening, it appeared the special committee had narrowed its options to:

Putting a $50 million cap on the amount the tobacco companies would have to post as a bond before they could appeal a punitive verdict in the class-action case.

Creating a contingency tax that could be added to the cost of a pack of cigarettes should the tobacco companies go bankrupt.

The legislators, after comments from the tobacco companies, said they fear the jury in the class-action case may award sick smokers more than $100 billion and as much as $300 billion in punitive damages. Such an amount could be ruinous to the industry, one tobacco attorney has said repeatedly.

Under state law, the tobacco companies would have to post a bond equal to about 120 percent of the verdict before they could proceed with their appeals.

Four other states where cigarettes are produced passed similar bond limits within the past month.

"If we don't do something here, we are gambling with something that the state and our people are counting on," Senate Republican leader Jack Latvala, of Palm Harbor, said in support of a measure to protect the tobacco industry from a huge verdict. "At the very minimum, we have to look at something in the area of a bond limitation."

Amount in doubt

But that sentiment was losing steam late in the week. Several legislators cast doubt on the prospect of a $300 billion verdict, estimating it would more likely be in the tens of billions, which they think the tobacco industry would be able to absorb.

"I don't see the whole sky falling in on the state of Florida with this verdict," said Sen. Walter Campbell, D-Tamarac.

Under a 1997 court settlement with Florida to reimburse Medicare for past treatment of sick smokers, the tobacco industry agreed to pay the state $13 billion throughout 30 years.

Unlike the class-action case, none of that money would go directly to any of the Floridians who smoked for years and now suffer from lung cancer, emphysema or any of the more than 20 ailments the jury in Miami-Dade Circuit Court ruled last year are caused by smoking.

That jury on April 7 ordered the tobacco companies to pay $12.7 million to three former smokers with cancer, who represent the entire class, as reimbursement for their medical bills and pain and suffering.

In four weeks, the same six jurors will be asked to determine how much the tobacco companies should pay the entire class of ailing Florida cigarette smokers as punishment for producing and selling them a dangerous product and lying to them about its health risks. That phase is to begin on May 15.

Change of opinion

News that the Legislature was considering a measure that could affect the class-action case in Miami became public on March 27, when Attorney General Bob Butterworth, in response to questions from legislators, gave a written legal opinion outlining what action lawmakers could take in connection with the case.